TaxTMI 
TaxTMI 
2012 (4) TMI 220
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....The Petitioner is the proprietor of a concern which engages in the business of electrical items, including the purchase and sale of meter accessories, old meters, meter parts and other electrical goods. The Petitioner has a registration certificate issued under the Rajasthan VAT Act, 2003, dated 26 September 1988 issued with reference to the provisions of Sub-sections (1) and (3) of Section 8 of the Central Sales Tax Act, 1956 inter alia in regard to metal scrap, meter parts, electrical meters and other parts. The Second Respondent issued a notice on its web portal of an eauction for scrap items lying at the store of the First Respondent at Pune. The e-auction was to take place on 19 January 2012. The Petitioner furnished a demand draft on ....
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....ting, loading and transporting the material from the premises of the First Respondent. On the basis of this, it is submitted that the sale would not occasion a transfer of goods from one State to another. The goods, according to the First Respondent, are sold on as is where is basis and the First Respondent does not make any stipulation on the conclusion of the sale in regard to the movement of the goods sold from one State to another State. Since the sale is being treated as a local sale, the tender condition, according to the First Respondent, stipulates that the buyer would have to pay VAT/sales tax in accordance with legislation in Maharashtra. Moreover, it has been submitted in the affidavit that the principal reason for not allowing t....
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....ned in accordance with sub-Section (2) to take place inside a State, such sale or purchase is deemed to have taken place outside all other States. Under Sub-section (2) of Section 4, a sale or purchase of goods shall be deemed to have taken place inside a State, if the goods are within the State- (a) in the case of specific or ascertained goods, at the time the contract of sale is made; and (b) in the case of unascertained or future goods, at the time of their appropriation to the contract of sale by the seller or by the buyer, whether assent of the other party is prior or subsequent to such appropriation. Under Section 6(1), every dealer is liable to pay tax under the Act on all sales of goods other than electrical energy effected by him i....
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....ate prescribed in Section 8(1) or else at the higher rate as prescribed by Section 8(2). The particulars which are referred to in the "C" Form are: the name of the issuing State, the office and date of issue, name of the purchasing dealer together with his registration certificate number, the validity of the registration and the particulars of goods purchased together with the bill for purchase. The selling dealer is required to produce the "C" Form in his assessment proceedings, if he wishes to pay tax at a lower rate as prescribed in Section 8(1). These principles are well established in view of the decision of the Supreme Court in State of Rajasthan vs. Sarvottam Vegetables Products.(1996) 8 SCC 639 6. For the purposes of Section 3(1)....
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....by the authorities under the Act. This principle has been reiterated in a recent judgment of the Supreme Court in Zunaid Enterprises vs. State of Madhya Pradesh. 2012 TIOL 27 SC-CT where the Supreme Court held thus: "...whether a sale originating in a State is an inter-state sale or not is essentially a question of fact to be determined by the authorities under the Act, since it involves the application of the provisions of Sections 3, 5, 6 and 9(1) of the Act to the facts established and hence, it will be a mixed question of law and fact. The facts require to be brought to the notice of the Assessing Authority by the appellants and it is for the assessing authority to come to a conclusion, based on those facts whether a particular trans....
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....tender conditions stipulates is that normally all sales will be treated as local sales and the buyer will have to pay VAT/Sales tax under the legislation of the State. The use of the expression "normally" is itself suggestive of the fact that the issue as to whether the sale is an intra-state sale or a sale which occasions a movement from one State to another is not conclusively determined by the contract. What clause 7.8 does, however, is to impose an absolute prohibition to the effect that sales against "C" Form/CST will not be allowed. In our view, the imposition of such a condition would be arbitrary and violative of Article 14 of the Constitution. Moreover, Article 301 of the Constitution provides that subject to the other provisions o....